Crown Resorts is expected to drop its sponsorship of the South Sydney Rabbitohs and Melbourne Storm, ex-Australian Cricket captain Michael Clarke and former Australian Open tennis champion Li Na as well as Crown Oaks Day.
There is also speculation that Crown’s fleet of multi-million dollar private jets for high-rollers and its clutch of flagship private golf courses are also in its cost cutting sites. Additionally, more than 200 jobs at the Perth casino have already been axed.
The cutbacks are due to revenue of its Australian resorts down 12.5 percent ($1.5 billion) in the half-year, caused mainly by a significant drop in VIP turnover, which fell 45.3 percent. The dramatic collapse in demand from visiting Chinese high-rollers was a direct follow on from the arrest of several of its staff in China last year for alleged gambling crimes.
Crown’s new executive chairman, John Alexander is undertaking the broad review of costs, expected to be finalised by June 30, according to The Australian newspaper.
Mr Alexander said last week that his prime focus was on driving returns from the company’s assets and delivering them back to shareholders in the most effective way.
The casino company is looking to reduce costs as it refocuses its attention on its Australian assets after dramatically reducing its overseas exposure.